Describe the type of fraud risk that is likely associated with the need for this audit procedure.

The following audit procedures are included in the audit program because of heightened risks of material misstatements due to fraud.
1. Use audit software to search purchase transactions to identify any with nonstandard
vendor numbers or with vendor names reflecting related parties.
2. Search sales databases for missing bill of lading numbers.
3. Use audit software to search for journal entries posted to the sales revenue account
from a nonstandard source.
4. Use audit software to search cash disbursement master files for missing check numbers.
5. Search the accounts receivable master file for account balances with missing or un-
usual customer numbers .
6. Use audit software to create a list of all credits to the repair and maintenance expense account for follow-up testing.
7. Engage an actuarial specialist to examine management’s assumptions about average length of employment and average life expectancy of retirees used in pension accounting decisions.
8. Send confirmations to customers for large sales transactions made in the fourth
quarter of the year to obtain customer responses about terms related to the transfer
of title and ability to return merchandise.
For each audit procedure:
a. Describe the type of fraud risk that is likely associated with the need for this audit
procedure.
b. Identify the related accounts likely affected by the potential fraud misstatement.
c. Identify the related audit objective(s) that this procedure addresses.

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